Comments on: Under Pressure, The Federal Reserve Goes Populist

By: rapier

rapier — Thu, 12 Nov 2009 23:19:38 +0000

In answer to post #1, no. There is no way that the Fed and Treasury will not increase their power if the legislation goes through before the next crisis. I cannot speak to the particulars of this bill and have some reservations that it will really alter much of anything but to the extent it takes the slightest bit of power from corporations is the extent to which it will fail to pass.

The financial crisis could be said to have been formented for the specific purpose of bankrupting the Treasury and destroying the Feds balance sheet. How does that square with my contention that all power will align behind those institutions. It is like this. By keeping their power for now they will be allowed to bankrupt themselves. In 10 or 20 years money itself, the good money, will be backed by corporate assets. Government money will be little more than script and Goldman Sachs et. al. will say what the government can and cannot spend money on.

By: marcopolo

marcopolo — Thu, 12 Nov 2009 23:08:33 +0000

That article would be very interesting. If I understood it.

By: fuckno

fuckno — Thu, 12 Nov 2009 23:02:33 +0000

right, a potential execution in Connecticut, focusing the mind, etc….

By: fuckno

fuckno — Thu, 12 Nov 2009 23:00:45 +0000

It is wonderful to be able to go to the Bernie Sanders petition page and have the absolute trust in the Senator’s integrity that one doesn’t feel compelled to have to read the petition prior to signing it. Same goes for Dennis Kucinich.

Two men of the people, and somehow unelectable to higher office, – WTF?

By: Starcats

Starcats — Thu, 12 Nov 2009 22:50:36 +0000

Probably not, but it is pleasing to annoy, harass and vex them. Making them scramble is beyond amusing and you never know what gods, mice and [wo]men might be able to accomplish through persistence.

By: OldFatGuy

OldFatGuy — Thu, 12 Nov 2009 22:31:14 +0000

Are they going to address the outrageous practice of the bank choosing the order of transactions on the same day?

Example: You have 50 dollars in your account, and there’s a $35 overdraft fee. At breakfast, you use your card, and it costs $8. Then at lunch, you use it again, and this time it costs $13. Then, in the afternoon, you find a book you’ve been wanting and buy it for $15. So far, you’ve spent $36 of the $50. Then, on your way home, a tire gets a nail in it, so you stop to have it fixed. The bill is $40, putting you over. You know it, but have to have a car. So you would expect to be billed $35, for that last transaction of the day.

No, no, no. Banks are ordering all transactions on the same date in the best possible order they can to maximize their revenues. So, you started with $50, they’ll take out the $40 first. Then they’ll take out the $15. (1 overcharge). Then out comes $13, and the $8, both also over. So you get hit with an overcharge fee of $105 (3 X $35) instead of the $35 you were expecting and accepted since it was an emergency.

That shit really happens, all the time. And it’s criminal. IMO.

By: eCAHNomics

eCAHNomics — Thu, 12 Nov 2009 21:52:01 +0000

Thanks for the link. Interesting take.

By: mattcarmody

mattcarmody — Thu, 12 Nov 2009 21:41:18 +0000

This article re: Chris Dodd’s attempt to salvage the current system under the disguise of populist language seems to indicate that Chris’s intentions are like swinging for the fences with a whiffle ball bat.

http://www.zerohedge.com/article/senator-dodds-bill-trying-prop-broken-system

By: readerOfTeaLeaves

readerOfTeaLeaves — Thu, 12 Nov 2009 21:37:00 +0000

Those who want to wallow in defeatism and despair of the Dems are free to do so.
I’ll be calling my Senators and my Congressman to say, “These proposals can’t pass soon enough and I’m happy to keep your back on:
1. Breaking up predatory banks using offshore accounts to keep their money out of regulatory authority.
2. AUDIT federal monies, always and everywhere.
3. End loopholes that allow banksters to remain unaccountable.”

Too Big To Fail is pure Wall Street ego trying to justify it’s greed, delusions, and extravagance.
They are economic predators who have not fulfilled their responsibilities to the larger US economy.

The sooner the Congress hears from all of us that we WANT THESE CHANGES, the sooner they’ll have enough ammo to ignore the banksters and push these changes through.

Unless, of course, you just want to believe that hopelessness and defeatist whining are going to make the world a better place.

Finally, a shout-out to Dodd.
If anyone ought to be pissed at banksters and the lack of TARP accountability, it’s Dodd, because they’ve made him out to look foolish.
He’s probably pretty motivated to restore his reputation by going after them.
I wish him all the luck in the world!

By: David Dayen

David Dayen — Thu, 12 Nov 2009 21:34:04 +0000

This is a question I’m seeking to answer, at least in part, in a future post. But yes, Dodd deserves credit for swinging for the fences in the hopes of getting something half-decent.